DS Cohen & Associates
In the hallowed halls of today’s top business schools, the buzz has always revolved around balance sheets and market strategies. Yet, this discourse often sidelines a pivotal aspect of business leadership—the ability to manage and inspire people. As the corporate environment rapidly evolves, MBA programs are under increasing scrutiny for producing graduates who, while proficient in analytics and strategy, lack the softer yet equally crucial skills of people management and leadership. While these skills have often been overlooked in business schools, the time is now for business education to capture a broader spectrum of competencies, one necessary for future success.
The Current Curriculum Dilemma
A deep dive into the curricula of leading MBA programs exposes a notable and concerning gap. In 2022, the Graduate Management Admission Council’s survey unveiled that fewer than 20% of top schools mandate organizational behaviour and human resource management courses. The heavy emphasis on technical subjects like strategy, finance and analytics sends a clear but outdated message: managing people is secondary to managing numbers. This isn’t 1986 or even 2002. Times are changing, and it’s time for today’s MBA programs to catch up.
MBA programs often align tightly with the demands of entry-level recruiters, focusing on hard skills critical for initial job placements. Graduates excel in roles requiring financial modelling and market analysis, but few MBA grades wish to remain at the entry level. Most aspire to the C-Suite. These technical capabilities, needed for initial entry, quickly reach their limits as graduates ascend to roles of leadership where interpersonal skills are paramount.
The Real-World Impact of Neglected Skills
The consequences of underemphasizing people-centric skills are hopelessly clear. Deloitte’s 2023 report underscores a widespread deficit in essential leadership skills among organizations worldwide, noting that 80% struggle with motivating teams and resolving conflicts. Leaders lacking training in these areas often hinder team morale and innovation, negatively impacting engagement and organizational growth.
As companies embrace flatter structures and collaborative work environments, traditional hierarchies give way to roles that require leaders to engage diverse teams, foster inclusivity, and demand more than mere strategic thinking expertise. This shift further highlights the crucial need for MBA programs to continue to move beyond the “hard” skills only.
The Recruitment Conundrum
Organizations can play a crucial role in motivating change within MBA programs by reshaping their recruitment strategies to prioritize soft skills. Companies that place a higher value on leadership potential, emotional intelligence, and behaviours that fit their culture and values during the hiring process can spur educational institutions to adapt. When technical prowess is complemented by abilities in empathy, team development, and emotional intelligence, the message becomes clear: managing people is as central as managing assets.
Reimagining MBA Education
A comprehensive overhaul is essential to address these deficiencies and ensure that MBA programs foster a balanced skill set. Mandatory courses in emotional intelligence, conflict resolution, and organizational behaviour are vital for nurturing well-rounded leaders. We must move past the paradigm of viewing these courses as secondary or even “soft.” They are equally critical to long-term success, especially as one moves up the corporate ladder. Additionally, integrating coaching into the MBA experience can significantly enhance students’ self-awareness, a fundamental aspect of leadership.
Cultural Integration and Continuous Learning
Understanding the critical importance of corporate culture within MBA programs can revolutionize the development of future leaders. Teaching students to integrate company values with business decisions rather than focusing exclusively on the bottom line promotes a new era of leadership.
Hands-on experiences, such as shadowing frontline employees, can provide invaluable insights into the real-world impact of business decisions. These immersive engagements foster empathy and enable informed, compassionate and values-based decision-making.
Towards a Balanced Approach: Strategic and Human-Centric
Balancing strategic and people leadership skills is now indispensable; this is undeniable. Though progress varies, many top business schools are beginning to evolve and integrate these elements into their programs. A more holistic view of leadership success, measured by metrics beyond financial outcomes, is gradually taking hold.
Conclusion: Crafting Leaders for the Future
MBA alums who have been schooled on strategy in today’s business world can enhance their leadership capabilities by adopting a more holistic approach.
- Shift decision-making from “How does this impact the bottom line?” to “How does this align with our values and purpose?”
- Engage directly with frontline employees and “work in their shoes” to foster a deeper understanding of how policies leaders impose affect real-world dynamics.
- Revisit the company values and ensure they are authentic, reinforce the company culture, and are not just aspirational and meaningless.
- Evolve the leadership goals to include employee retention and well-being metrics—not just revenue per employee.
- Ensure all communications to stakeholders and shareholders include the company’s values and vision or purpose and unwaveringly living to the values, especially under external pressure.
- Engage with external executive coaches to help develop employees’ emotional intelligence, creating balanced, empathetic, and impactful leaders
A final point: The best leaders are perpetual learners. Those who adapt, listen, and invest in corporate culture, championing the company’s values, will outperform those who rely solely on strategic expertise. MBA graduates focusing on continuous development, emotional intelligence, and people-first leadership are well-rounded leaders poised to navigate strategic opportunities and human challenges.
Business schools can transform graduates into well-rounded leaders equipped to navigate strategic opportunities and human challenges by emphasizing continuous development, emotional intelligence, and people-first leadership. By embracing this evolution, MBA programs can shape graduates into future-ready, transformative business leaders who drive organizational and societal progress.
Now is your turn to contribute your perspective on the discussion on LINKEDIN
David Cohen is completing his second book on how to hire for fit to values/culture. His first book is called The Talent Edge. He has conducted workshops globally on Structured Behavioural Interviewing. For more information on the workshop, please contact DAVID.
